"Forex Trading sells something that is traded on the forex market through a broker to make a profit " by Edi Marsel
what he Forex
Free Practice forex business please read page: How Forex companies
Forex is derived from the word "change", meaning the exchange of currency or exchange with each other, the aim is to initially foreign payment.
Due their perbedaa n suply and demand within a certain period of time, resulting in fluctuations in currency values relative to each other. Unlike the average difference between the value of money at a time is then used to take advantage.
Since no such understanding is finally currencies are traded in a market called the foreign exchange market.
Forex trade are activity Buy (purchase) or sell (sell) the continuous and consistent currency profit.
it can also mean that forex trading point is the activity of currency exchange them continuously for profit.
unlike trading stocks will benefit if the shares we bought the price goes up, the forex trading we can benefit from two directions, the price went up or to down eg
advantage of price path
price or exchange rate GBP / USD is now 1.5000
Meaning 1 GBP = 1.5 USD
(1 GBP (pounds) if exchangeable USD (dollars) to 1, 5 USD)
now I have a principal amount of $ 150
I predict that the exchange rate GBP / USD Up
what I do is to buy GBP / USD or GBP buy using USD, in the direction of the exchange of dollars, I became books.
After the exchange, $ 150, I changed to 100 pounds.
After an exchange rate per hour GBP / USD rose to 1.7000
Meaning 1 GBP = 1.7 USD
What should I do now is SELL GBP / USD or buy back 100 pounds I want to dollar.
Once bought my 100 pounds $ 170 (100 x 1.7)
PURCHASE SALE transaction in an interval of an hour before my capital increased from $ 150 to $ 170, which means that I get a profit of $ 20
Kuntunga n of price down
price or exchange rate GBP / USD is now 1.5000
I predict exchange rate GBP / USD will drop.
I do is SELL GBP / USD. Let's say I want to sell 100 pounds.
Because I do not have books for sale, the process is I borrowed 100 pounds of silver broker to be sold or traded in dollars.
once bought 100 pounds turn into $ 150
After an hour of exchange rate GBP / USD rose from 1.5000 becomes 1 4000
Meaning 1 GBP = 1.4 USD or 1 USD = 0.72 GBP
what I do now is I trade back $ 150 in books. So I mendapatlan 107 pounds.
I would now like 107 pounds .From this 107 pounds, 100 pounds, I returned to the broker, and the remaining 7 books this is my advantage.
of SELL and BUY transaction in an interval of one hour before the capital, I went from 100 pounds to 107 pounds, which means that I get a profit of 7 books .
in practice, it is not as complicated as explained above, because every broker provides a system that facilitates the customers.
once you predict the price will go up, you buy. if it is indeed your UP CLOSE and you benefit The benefit is calculated from the number of points earned multiplied by the number of lots traded.
Similarly, if you predict the price will fall, you sell, if you close BAS actually benefit you.
By understand that we can benefit from this double sense, the market declined and the market goes up, we hope you can see that there is great opportunity offered by forex trading for you to make a profit at all when, where and market conditions than anything.
The next forex training material is Basic bargaining tool